Norfolk Southern downgraded to In Line from Outperform at Evercore ISI

Evercore ISI analyst Jonathan Chappell downgraded Norfolk Southern (NSC) to In Line from Outperform with a price target of $289, up from $279, following the confirmation of “the much-anticipated merger announcement” between Norfolk and Union Pacific (UNP). Without a voting trust component to the proposed deal, the rails will continue to operate and trade independently until the deal is approved by the STB and closes, which is anticipated for early 2027, the analyst noted. Shares now trade within 13% of the deal price, which leaves “limited upside during the roughly 22-month review process,” the analyst added.